Guide to Personal Insolvency Arrangements

You can use the following guide to better understand what a Personal Insolvency Arrangement(PIA) is, whether you are eligible, what are the benefits of a PIA and how you can apply.

IFA Debt Support Service (DSS)

• The IFA DSS was established in response to the prevalence of farmers in arrears following the last recession.
• The IFA DSS is comprised of an experienced team of IFA volunteers. IFA members in financial difficulty can avail of advice or support when negotiating with creditors. Stafford Farm Consultants assists the IFA DSS in its work.
• The IFA DSS has been involved in over 500 cases to date. Currently, the IFA DSS is involved in 60 active cases dealing with banks, vulture funds and merchant debt.

What is a Personal Insolvency Arrangement (PIA)?

• A PIA is a debt resolution mechanism.
• It acts as an insolvency solution for people with unsecured and secured debts.
• It is a formal agreement with creditors that will write off some unsecured debt and restructure any remaining secured debt, while keeping the person in their home and retaining the farm where possible.
• A PIA has a maximum duration of up to 6 years during which time unsecured debts are settled. A PIA might only last for 6-12 months. Thereafter, restructured secured debt repayments continue. This restructuring can possibly include a reduction of interest rates, the extension of the clearance period and a write-down of the amount of secured debts.

More details on Personal Insolvency Arrangement can be found on IFA website.